With more Tennessee attorneys – especially new lawyers – deciding to “hang out” their own shingle and begin a solo or small firm practice, the TBA has developed the Solo in a Box Toolkit. Each issue of E-DICT this year will spotlight one of the toolkit’s 12 sections. This month we look at the resources available for choosing office space.

One of the primary questions an attorney must answer is where to physically practice law. There are various options, including leasing office space, purchasing a building, working from home, utilizing a virtual office or sharing space with other lawyers. Each of these options has advantages and disadvantages. In addition, lawyers should give careful consideration to the image they wish to project to clients and opposing counsel, as well as the ethical issues associated with each option. The “Choosing Office Space” section of the Solo in a Box Toolkit looks at these issues and reviews three possible office settings.

Home Office/Virtual Office – Utilizing a home office has some considerable advantages, including the relatively low cost and convenience, however, there are significant drawbacks. Some attorneys have indicated that there were too many distractions at home, particularly when the residence is shared with other adults and/or children. A home office may also present challenges with client meetings, depositions and support staff. However, there are virtual office services that provide phone-answering services and executive suites that can be utilized for meetings. Attorneys that want to meet with clients at home should check to see if there are zoning issues or restrictive covenants that prohibit such activities.

Commercial Lease – Leasing an office is an excellent way to begin a practice, however, there are several considerations to keep in mind. First, consider proximity to the courthouse, bank, law library and potential client base when looking for space. Second, it may be beneficial to retain the services of a commercial real estate agent to find the right space. Third, once a space has been identified, be sure to utilize a written lease agreement, regardless of the situation. A short-term lease may be preferable until the business grows and long-term needs can be better predicted. Fourth, consider executing the lease in name of the LLC, PC or partnership to avoid personal liability. Finally, be sure to closely review the lease. Pay attention to CAM (Common Area Management) fees that may not be clearly defined, and provisions regarding early termination, payment for utilities, term renewal and responsibility for taxes, insurance and maintenance and repairs (“triple net lease”).

Shared Space – Often several attorneys maintain separate practices but lease offices in a single location and share the expenses of a receptionist and conference space. This can be an excellent arrangement for reducing expenses, increasing referrals and having access to more experienced attorneys. However, special ethical considerations may arise concerning conflicts, so be sure to review the Rules of Professional Conduct with that in mind. Even in an office sharing situation, an agreement should be drafted so all parties have the same, enforceable understanding. Again, it may be preferable to execute the agreement or lease in name of the LLC, PC or partnership to avoid personal liability.

Learn more about choosing an office at the tookit website.

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